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Because it's in the jurisdiction of the Port Authority and not the same zoning authority that handles the rest of Manhattan. Same reason a lot of other places in the Port Authority's purview have not been rebuilt while places outside the PA district have been - they haven't gotten around to approving it yet.

Nope, the PA only has authority over certain parcels of land directly related to transportation operations. They hold land that has their facilities, and random other properties that they lease out until they need to build on them and stop leasing them anymore.